We will describe the economic laws of supply and demand as the result of an information transfer model. Much of the description of the information transfer model follows [1]}. Following [2]} we have a system that transfers informationThis follows the notation of one of the earlier versions of [1]}. The German word for source is quelle. We did not want to create confusion by using \(S\)  and \(D\)  for source and destination and then for supply and demand, since they appear in reverse order in the equations. \(I_q\)  from a source \(q\)  to a destination \(u\)  (see Figure REF ). Any process can at best transfer complete information, so we know that \(I_u \le I_q\) .
<FIGURE>